18 N. H. Experiment Station [Bulletin 325 



gri'eatly, the savings would be in llir ii('i<:lil)()rh()()(l of $30,000 to $85,000. 

 Expressed on a per farm basis tliis saving would average between $89 

 and $45 a year; or a saving of about seven cents per Inindi-cdwoiglit of 

 milk. 



Two important sources of saving have not been considered in arriving 

 at the above estimates. The first of these is the reduction in labor costs 

 wliich a reorganization of routes would bring about. While some of 

 tlie projected routes would require the use of large capacity trucks witli 

 consetpient increase in labor cost per hour, the great reduction in bolh 

 number of routes and mileage traveled would much outweigh such in- 

 creases, and significant reductions in labor costs wonlil be sim-ui'imI. 



The second source of saving not taken into account in arriving at tlie 

 estimates given above is reduction of charges on routes where they are 

 above competitive levels. At the time of the study ^ there was found 

 to be a very marked divergence of actual charges from those which might 

 be expected were competitive forces active in adjusting rates. AVith the 

 exception of a few routes, the rate structure appeared to be without plan 

 and to be based more upon custom and bargaining power than upon serv- 

 ices rendered. 



Although these additional savings cainiot be estimated in monetary 

 terms, they are important and. for individual farmers, may often be even 

 more important than the benefits from reorganization. 



Methods of Reducing Hauling Charges 



TT cannot be over-emphasized that the reductions outlined in this study 

 are potentially within the power of jiroducers to l)ring about. Un- 

 like some of the other costs of distribution which are incurred at stages 

 in llio distributive process far removed from the producer, tlie cost of 

 milk trucking is usually paid directly by the farmer in the form of a 

 deduction from his check. 



In some markets- where producers' cooperative organizations are ac- 

 tive, there have been pronounced reductions in hauling costs. This has 

 been particularly true where the coo])erativc exercised control over a 

 large percentage of the milk delivered to a market. Without such con- 

 trol, or some arrangement whereby all distributors and producers cooper- 

 ate, it is well-nigh impossible for the individual producei-. distributor, or 

 truckman to introduce such improvements in hauling. The economies 

 outlined come not from indiviilual but from collective action and de- 

 pend on the willingness of all in the market (or at least all the producers) 

 to work together. 



in markets where producers' cooperatives are not in a position to in- 

 troduce or maintain elficiency in milk assend)ly. county planning eom- 



niiltccs. ill cooperation with ll xtciision sei-vicc and the persons directly 



concei-ned. may be able to bring aljout the desired conditions. While it 

 may be difficult to bring al)out the necessary changes by any method shoi't 

 of I'fgidation l)y an anthorizcd piihlic agi^ncy. such [)i"ocetlni'e should be 

 used onlv after all voluntaix' methods have been tried. 



' MacLeod, et nl, opus cit. 



' Sec Welclon, ct al., o|>us cit. and bartlclt, vt al., opus cit. 



